European lawmakers have backed their negotiating position on the EU-US trade agreement with strict conditions attached, including safeguards that allow Brussels to suspend preferences if Washington violates the 15% tariff cap or engages in economic coercion. The deal, set to expire on 31 March 2028, features unprecedented "sunrise" and "sunset" provisions ensuring American compliance before EU concessions take effect.
The European Parliament announced on 26 March 2026 that its members endorsed their position on two proposals covering tariff arrangements under the EU-US Turnberry trade deal.
The agreement, reached in summer 2025, aims to remove most tariffs on American industrial products while granting preferential access for US seafood and agricultural goods, reflecting commitments made in July 2025.
EU Parliament members reinforced the suspension mechanism, giving the European Commission authority to halt trade preferences if Washington imposes tariffs exceeding the agreed 15% limit or introduces new duties on European exports. The clause can also be triggered if the US undermines the deal’s objectives, discriminates against EU businesses, threatens member states’ sovereignty, or engages in economic coercion.
MEPs introduced a “sunrise clause” requiring US compliance before new tariffs take effect. Specifically, the US must reduce tariffs on EU goods containing less than 50% steel and aluminium to a maximum of 15%. For products exceeding 50% steel and aluminium content, failure to meet the 15% tariff ceiling would result in EU preferences on American steel, aluminium, and related products ending six months after the regulation comes into force.
The regulation includes an expiry date of 31 March 2028, with any extension requiring a new legislative proposal backed by a comprehensive impact assessment.
The Commission would be tasked with monitoring the impact of the new rules and would be able to suspend the new tariffs temporarily, should US imports reach a level that could cause serious harm to EU industry, for instance, in the event of a 10% increase in imports of a particular group of products.
Sunrise and Sunset provisions shape agreement
Under a sunrise clause, EU tariff reductions will only activate once the US fulfils specific commitments, particularly reducing tariffs to a maximum of 15% on select EU goods, especially products containing steel and aluminium below certain thresholds. If Washington fails to meet these conditions, Brussels retains the right to withdraw tariff preferences within a set period.
The agreement includes an automatic expiration date of 31 March 2028 unless renewed through fresh legislation backed by a comprehensive impact assessment.
The Parliament has granted the European Commission authority to monitor trade volumes and temporarily halt tariff concessions if American imports threaten serious damage to EU manufacturers. This safeguard mechanism allows swift action against sudden spikes in specific product imports.
The conditional approval demonstrates Parliament’s strategy of pursuing closer transatlantic trade ties while maintaining strict oversight. Final ratification depends on verifiable US implementation and ongoing adherence to agreed terms, with negotiations among EU Member States still required to finalise the legislation.
Background
EU-US Turnberry Trade Deal
On 21 August 2025, the US and the EU reached a comprehensive Framework Agreement aimed at creating reciprocal, fair, and balanced trade between the world’s two largest economies. The deal marks a significant reset of transatlantic trade relations and addresses longstanding American concerns about trade imbalances. The agreement positions the EU-US trade relationship—one of the globe’s most substantial, with mutual investment stocks exceeding USD 5 trillion—on a stronger footing while supporting reindustrialisation efforts on both sides of the Atlantic.
Under the framework, the European Union plans to eliminate all tariffs on US industrial goods and grant preferential access for American seafood and agricultural products. This includes tree nuts, dairy, fresh and processed fruits and vegetables, soybean oil, pork, and bison meat. The EU will also extend a 2020 lobster tariff agreement that expired on 31 July 2025, expanding it to include processed lobster.
In exchange, the United States commits to applying tariffs capped at 15% on EU goods, combining the Most Favoured Nation rate with a reciprocal tariff. Starting 1 September 2025, certain critical products—including unavailable natural resources like cork, all aircraft and parts, and generic pharmaceuticals—will face only standard MFN tariffs without additional charges.
EU commitments
The European Union has pledged substantial economic commitments through 2028, including USD 750 billion in purchases of US liquefied natural gas, oil, and nuclear energy products. Additionally, the EU plans to procure at least USD 40 billion worth of American AI chips for computing centres.
European companies are expected to invest an additional USD 600 billion in strategic US sectors by 2028, demonstrating strong confidence in the transatlantic partnership. The EU also commits to significantly increasing procurement of American military and defence equipment to strengthen NATO interoperability.
Addressing trade barriers
Both parties have agreed to reduce non-tariff barriers, with mutual recognition of automobile standards and enhanced cooperation on technical standards development. The agreement tackles concerns about EU regulations, including the Deforestation Regulation, Carbon Border Adjustment Mechanism, and Corporate Sustainability Due Diligence Directive, with the EU committing to address their impact on American businesses.
The framework also establishes cooperation on digital trade, with the EU confirming it will not adopt network usage fees. Both sides pledge to continue supporting the multilateral moratorium on customs duties for electronic transmissions.
